Chapter 6
Recruiting and Retaining Qualified Employees Recruitment · Vital to a company’s long-term business success · Efforts should be consistent with organizational strategy, vision and values · Questions to consider during strategic HR planning § How many new hires now and in 3-5 years? § Long-term or short-term commitment from new hires? § How much can we afford to pay? Can we recruit the best with top dollar pay or only offer modest pay? § Do we want people with a new perspective or someone who will “fit in”? § Competencies required? How quickly will these needs change? Retention · Objective: reduce unwanted voluntary turnover by people the organization would like to keep within its workforce · Low turnover helps gain advantage over competitors by reducing overall labor costs and improving competitiveness · Reducing Labor Costs § Cost of turnover includes cost to fill the position, errors caused by new employees, decreased productivity, lost clients who favored the former employee, lower morale by over-worked employees picking up slack, lost knowledge, potential business contacts, etc The HR Triad: Rolls and Responsibilities for Recruiting and Retaining Employees · HR Professionals § Take the lead in designing a systematic and integrated approach to recruiting and retaining employees § Take responsibility for filling the organization’s staffing needs efficiently · Line Managers § Help promote the company and attract employees or can be the cause of high turnover § Actively involved as the selection process gets underway § Key role in determining if an employee stays with or leaves the company, therefore managers are often taught good leadership skills · Employees § Encourage friends and family to apply § Apply for other positions within the organization § Central to retention – if talented and fun to work with, new employees want to stay with the company and it is therefore easier to retain top talent Recruiting Sources and Methods Internal Labor Market: Job Postings: ''' · Enables current employees to get a sense of what is valued, seeing frequent turnover within a department may signal a problem that discourages interest and what competencies are in demand · Can reduce turnover by displaying advancement opportunities and that employees do not need to look outside the company '''Talent Inventory: · Includes name, prior jobs, experience, performance, compensation and demonstrated competencies, work-related interests, geographic preferences and career goals if known · Advantages: employee satisfaction due to personal development and career advancement opportunities, employers incur less recruiting expense and lower salaries than outside recruits · Disadvantages: most qualified candidates may never be considered, infighting between employees applying for the same position, inbreeding – less creative or new ideas due to internal familiarity with how the organization operates External Labor Market: Walk-in Applicants: · Attract walk-ins through open house; more highly skilled professionals “walk-in” via the Internets cyber doors Electronic Media: Employee Referrals: ' · Possible financial incentives linked to completion of application, acceptance of employment or completion of work for a specified period of time · Result in the highest one-year survival rates · Disadvantage: employees tend to refer those similar in age, gender, ethnicity and religion, therefore limiting diversity and hampering creativity '''Public Employment Agencies: ' · Offer counseling, testing and placement services to everyone, with special servies to military veterans, some minorities, colleges and technical and professional people 'Private Employment Agencies: ' · Expensive, restrictions of approaching recently placed executives or other company employees thereby limiting the applicant pool, very selective prior to introducing to employer thus increasing possibilities of rejecting a good candidate 'Job Fair: ' · Conducted by schools, communities, or through trade and professional associations 'Host-country nationals: ' 'Third-country nationals: ' '''Contingent Workers, Rehires and Recalls Contingent Workers: ''' '''Recalls and Rehires: Advantages: ' '''Disadvantages: ' '''The Recruitment Experience Easy and Fast: ''' '''Behavior of Recruiters: Realistic Job Previews: ' · Increases number of eventual recruits, recruits are more committed and less likely to quit '''EEO-1 (Employer Information Reprot) report: ' 'Affirmative Action Programs (AAPs): ' · Title VII of the Civil Rights Act identifies women, African Americans, Hispanics, Native Americans, Asian Americans and pacific Islander Americans as protected groups 'Federal Contractor: ' · Executive Order 11246 (1965) requires federal contractors to: § Have and abide by an equal employment policy § Analyze workforce for under-utilization of women and ethnic minorities § If under-utilization is revealed, must develop a plan to eliminate and good faith effort to implement plan · Required to file written affirmative action plans with Office of Federal Contract Compliance Programs (OFCCP) – the agency responsible for overseeing employment practices of federal contractors and enforcing relevant federal regulations · Required components of AAP: 'Utilization Analysis: ' 'Availability Analysis: ' '''Goals and timetables: 'Consent Decree: ' 'Retaining Employees – ' Chapter 5 Chapter 7